True or False: A REOC is suitable for an investor who owns a real estate asset used by their own business.

A real estate operating company (REOC) structure can indeed be suitable for an investor who owns a real estate asset used by their own business. The reason for this is that REOCs are designed to provide flexibility in how a business manages its real estate assets, allowing the owner to benefit from both operating the business and having real estate investments.

The REOC structure enables the investor to capitalize on the value of their real estate while also leveraging the operational aspects of their business. This dual benefit can provide financial advantages, such as potential deductions related to the real estate, while also allowing for the operational use of the property.

Investors looking to maximize their returns while maintaining an active role in their business often find that REOCs offer a compelling option by allowing both asset appreciation and operational synergy. This is particularly relevant for businesses that can generate cash flow from their real estate investments, making the REOC a practical choice in such scenarios.

In contrast, other forms of real estate investment might not offer the same level of integration between operating and owning assets, hence making the REOC a favorable structure for this type of investor.